In the midst of the stock market benchmark tanking over 1,000 points before some partial recovery on Friday, Securities and Exchange Board chairman C B Bhave said the regulator is keeping a close watch on the developements and there is no reason to be worried.
"I have confirmation from both of the stock exchanges that they have seen nothing unusual in the market today. We are keeping a close watch on this," Bhave told a private television channel.
Sebi is also in close touch with the RBI and the finance ministry and as liquidity was the main issue, the RBI has addressed it, Bhave said.
On queries whether redemption pressure was being faced by mutual funds, he said that SEBI was collecting the data and the general liquidity issue was something that needs to be addressed and the RBI has done it.
Pointing out that there was no payment issues in the markets on Friday, Bhave said that both the exchanges have confirmed that pay in and pay out has gone smoothly.
"We have not seen any event in the market with regard to the margins available from the brokers that should at anyway alarm us. We are keeping a close eye on this," he stated.
The regulator said that people would sell or buy the shares depending on their preferences and prices. "But that's not something as a regulator we can intervene in. We have to see that the integrity of our markets are maintained."
On futures market, he said that actions taken by various regulators show that the derivatives market were not touched, it was only in the cash market that some action was taken by them.
"There is no shorting by institutions in our cash market and so we do not see any worry there."